The Indian Premier League (IPL) is back to being an eight-team affair. The Indian cricket board (BCCI) has decided to terminate its agreement with the Sahara Pune Warriorsfranchise on account of the latter failing to provide the necessary bank guarantee as directed by the Bombay High Court early this year.
The Working Committee (WC) of the Board met in Chennai on Saturday to discuss Sahara's "default" in not submitting the bank guarantee of Rs 170 crore for the seventh edition of the IPLscheduled next year. The Board has claimed that as per the terms of its franchise agreement, this bank guarantee was due for delivery in March 2013, more than six months ago.
The BCCI also says that in August this year, pending arbitration, Sahara had moved the Bombay HC seeking injunction on the cricket board's right to terminate the franchise. In its order, dated September 5, the court, however, had ruled that BCCI would not terminate the agreement only if Sahara ended up paying the required bank guarantee.
The BCCI now says it wrote to Sahara on five separate occasions in the last six months - between April and October - asking for the bank guarantee to be submitted, but their continuous refusal to do so has led to the termination now.
Sahara had bought the Pune franchise in 2010 through a bidding process for a whopping $370m, the payment for which had to be done in 10 installments of $37m per year.
"In order to proceed with the preparations for the 2014 season, it is important that BCCI now has certainty as to whether the Pune franchise will comply with the terms of its franchise agreement," the board said in a statement issued on Saturday. "Given Sahara's continued position that it would not deliver the bank guarantee, the WC unanimously determined to terminate the franchise agreement, while taking whatever action was necessary to protect the BCCI position," the statement added.
The BCCI is unlikely to float another tender this year to replace the Pune franchise and therefore, when fresh player auctions are held in 2014 ahead of the league's seventh season, only eight teams will be in the fray.
'Withheld bank guarantee because of BCCI's betrayal of trust'
Sahara Group on Saturday sought to defend its decision to not furnish the bank guarantee, saying it was forced to do that as the Board "has always acted in betrayal of trust and not fulfilled its part of obligations".
Sahara Group said the "arbitrary" reduction in the number of IPL matches by the BCCI from the number stipulated in the franchise agreement was at the centre of the whole dispute.
"BCCI had made pre-bid representations that 94 matches will be held in every season and then arbitrarily reduced the number of matches from 94 to 74 & then 76. Sahara had placed its bid for IPL franchise based on the representations of BCCI which were false," the Sahara group said in a release.
"The reduction in the number of matches has had a substantial financial impact due to the reduction in the central revenues under the Franchise Agreement. Sahara had raised the issue regarding significant reduction in the number of matches which was one of the most important basis and criteria for the bid, since 2011," it said.
"BCCI did not want to honour their promises. Therefore due to non fulfillment of reciprocal obligations of BCCI and failure to keep its promises as given in February 2012, Sahara was left with no option but to hold back the Bank Guarantee till promises and obligations were fulfilled. But instead of fulfilling its promises and obligations, BCCI went ahead and terminated the contract, which itself is in breach."
Trimmed SA tour blamed on Sahara!
Chennai: In the working committee meeting, the decision to finish the South Africa tour by December end was too blamed on Sahara. It was told to the members that Sahara's sponsorship deal with the Indian team ends by the end of the year and it's certain that they won't renew the contract.
"It wouldn't have been feasible to have two sponsors for the team in the same series. That is one of the main reasons we have to finish the South Africa tour by December 31," a source said.
Elaborating on the curtailment of the South Africa tour, the working committee members were told that the entire country, including Sachin Tendulkar, wanted his 200th Test to be in India. That's why the BCCI decided to have the West Indies series in India in November.
The Working Committee (WC) of the Board met in Chennai on Saturday to discuss Sahara's "default" in not submitting the bank guarantee of Rs 170 crore for the seventh edition of the IPLscheduled next year. The Board has claimed that as per the terms of its franchise agreement, this bank guarantee was due for delivery in March 2013, more than six months ago.
The BCCI also says that in August this year, pending arbitration, Sahara had moved the Bombay HC seeking injunction on the cricket board's right to terminate the franchise. In its order, dated September 5, the court, however, had ruled that BCCI would not terminate the agreement only if Sahara ended up paying the required bank guarantee.
The BCCI now says it wrote to Sahara on five separate occasions in the last six months - between April and October - asking for the bank guarantee to be submitted, but their continuous refusal to do so has led to the termination now.
Sahara had bought the Pune franchise in 2010 through a bidding process for a whopping $370m, the payment for which had to be done in 10 installments of $37m per year.
"In order to proceed with the preparations for the 2014 season, it is important that BCCI now has certainty as to whether the Pune franchise will comply with the terms of its franchise agreement," the board said in a statement issued on Saturday. "Given Sahara's continued position that it would not deliver the bank guarantee, the WC unanimously determined to terminate the franchise agreement, while taking whatever action was necessary to protect the BCCI position," the statement added.
The BCCI is unlikely to float another tender this year to replace the Pune franchise and therefore, when fresh player auctions are held in 2014 ahead of the league's seventh season, only eight teams will be in the fray.
'Withheld bank guarantee because of BCCI's betrayal of trust'
Sahara Group on Saturday sought to defend its decision to not furnish the bank guarantee, saying it was forced to do that as the Board "has always acted in betrayal of trust and not fulfilled its part of obligations".
Sahara Group said the "arbitrary" reduction in the number of IPL matches by the BCCI from the number stipulated in the franchise agreement was at the centre of the whole dispute.
"BCCI had made pre-bid representations that 94 matches will be held in every season and then arbitrarily reduced the number of matches from 94 to 74 & then 76. Sahara had placed its bid for IPL franchise based on the representations of BCCI which were false," the Sahara group said in a release.
"The reduction in the number of matches has had a substantial financial impact due to the reduction in the central revenues under the Franchise Agreement. Sahara had raised the issue regarding significant reduction in the number of matches which was one of the most important basis and criteria for the bid, since 2011," it said.
"BCCI did not want to honour their promises. Therefore due to non fulfillment of reciprocal obligations of BCCI and failure to keep its promises as given in February 2012, Sahara was left with no option but to hold back the Bank Guarantee till promises and obligations were fulfilled. But instead of fulfilling its promises and obligations, BCCI went ahead and terminated the contract, which itself is in breach."
Trimmed SA tour blamed on Sahara!
Chennai: In the working committee meeting, the decision to finish the South Africa tour by December end was too blamed on Sahara. It was told to the members that Sahara's sponsorship deal with the Indian team ends by the end of the year and it's certain that they won't renew the contract.
"It wouldn't have been feasible to have two sponsors for the team in the same series. That is one of the main reasons we have to finish the South Africa tour by December 31," a source said.
Elaborating on the curtailment of the South Africa tour, the working committee members were told that the entire country, including Sachin Tendulkar, wanted his 200th Test to be in India. That's why the BCCI decided to have the West Indies series in India in November.
